Deepak Fertilisers buys 20% stake in Mangalore Chemicals

Sources with direct involvement suggest that Deepak Fertilisers has bought 20% stake in Mangalore Chemicals at Rs 63/share. Burman Family and fund houses like Sundaram and DSP BlackRock have sold their shares to the company.

JM Financial is the sole advisor to this transaction. Sources suggest Deepak Fertilisers will make a move to buy Vijay Mallya's stake in the company which is at around 17%.

This deal has left Zuari Fertilisers in a precarious situation, it holds 10% stake in the company which was bought from the lenders to Vijay Mallya. It was a hostile takeover bid by Zuari but the other investors backed Deepak Fertilisers.

The spokesperson of Deepak Fertilisers offered no comment.